A small town in New York state might end up banning Bitcoin mining operations temporarily. The law was introduced by the Mayor and essentially aims to place an 18-month ban on new Bitcoin mining operations so that they can create more current zone regulations. They have scheduled a public meeting for March 15, so we'll know more about the situation in about a week.
The primary concern (and the reason for the law being proposed) is the amount of electricity being utilized for crypto mining. Last month the Mayor stated that Bitcoin mining is consuming at least 10 percent of the entire city's electricity. The city has incredibly cheap electricity, which allows these Bitcoin mining operations to thrive and grow. One of the biggest bottlenecks of crypto mining is the cost of energy that it takes to mine, so having access to cheap power typically takes high priority for serious miners. According to the National Public Radio, the average cost for electricity comes out to about 12 cents per kilowatt-hour. Plattsburgh rates are only about 4 cents per hour, one third the national average according to those statistics.
If too much electricity is used for Bitcoin mining, the overall cost of energy will go up — for everyone. And that is something that they are hoping to address in the proposed 18-month Bitcoin ban. Whether or not a realistic plan can be developed in that time frame is yet to be seen, but we'll likely learn more at the public meeting on the 15th of March.
What do you think? Is it reasonable in this case to temporarily ban Bitcoin mining to get the city electricity in order? Let us know in the comments below!